The Saarland state in Germany will not block Chinese electric car manufacturer BYD from potentially becoming an investor in a Ford car plant. Despite Ford being an American company and not making decisions that were popular with the state, the country of origin is not the only factor considered.
The Wall Street Journal reported that BYD was one of fifteen investors interested in taking over the Ford plant in Saarlouis after it stops producing the Ford Focus in 2025. The state government and Ford are currently in discussions to find a new investor, with an announcement expected by the end of the first quarter.
See also: BYD in Talks with Ford to Acquire German Plant for European ProductionĀ
BYD is one of many Chinese electric vehicle manufacturers that are making their way into the European market, as European players lose their market share in China. BYD has stated that it is looking for European sites but would prefer to build its own plants instead of buying existing ones.
Germany is currently grappling with how to reduce its economic dependence on China while protecting itself from potential geopolitical tensions.
However, Saarland state premier Anke Rehlinger noted that they have had a positive experience with Svolt, a Chinese battery cell maker that has a plant in Saarland. Rehlinger emphasized that geography will not be the basis for discrimination, and that the state will consider all potential investors objectively.
